What's Going on with Healthcare?

With a new Commander in Chief and a retooled Congress, you are probably wondering what the fate of the ACA (Affordable Care Act, AKA: Obamacare) will be.  Contrary to many beliefs, the ACA is still alive.  Although President Trump issued an executive order (EO) to soften the effects of any mandates that the act prescribes, until it is repealed, replaced and or altered, the rules still apply.  There is quite a bit going on behind the scenes in congress, as you’ve likely read, and the odds of change to the status quo are not only high, but certain.

Realistically, the President’s party does not control enough seats in the Senate to completely repeal the ACA.  They do have the voting power in the House of Representatives to change much of the act through a process called Budget Reconciliation.  That is where the House can enforce changes to the law that have a direct effect on the congressional budget.  Mandates that do not affect the budget, such as Guaranteed Issue (Which guarantees coverage, notwithstanding pre-existing conditions) and keeping a child on your policy until age 26, are not issues that can be changed through the budget reconciliation process.  Budget reconciliation simply requires a majority vote.  In order for a full repeal of the act, a supermajority (60 votes) in the Senate is required, which is not only unlikely, but pretty much impossible under the current congressional climate. (The Republicans only control 52 seats in the Senate.)

So, in the short-term, continue to follow the existing rules.  It appears that the IRS is still enforcing the present regulations and penalties.  As time passes in the months to come, expect there to be legislated changes that will affect the future of how we acquire and utilize the healthcare system.  One of the major challenges to President Trump’s stated intentions to improve the healthcare climate is that healthcare costs and the fees charged by providers are not declining.  Therefore, we look forward to seeing just how the government will intervene to actually lower the costs.

Stay tuned!